Silvio Napoli at

Schindler India(A)
Segment Stops Speed
MPS
Schindler
Products
Manual 2-8 0.5-0.7 NIL
Low Rise 2-15 0.6-1.5 S001
Mid Rise 16-25 1.5 S300P
High Rise >25 >1.5 S300P
Indian Elevator Market
Increase of import duty
and rise of transfer
prices from European
plants
Slow response from
European plants in
giving them design
specifications and
support
Sales orders received
only for customized
products
Culture Shock way of
doing business in India
very different
The Indian Team did
not trust Napolis
strategy
Challenges faced by Silvio Napoli
Mr. Napoli, if you fall flat on your face here you are finished!
But if you succeed, you will have a very nice career.
ICEBERG MODEL (SCHINDLER SWITZERLAND)
ARTIFACTS
Hierarchical structure with top floors reserved for
the executives
Position more important than age
Task oriented
Technical competency and academic qualifications
are highly respected
Adhere to high quality standards
Politeness Important
No first names
Delegation of responsibility and ownership
BELIEFS AND VALUES
Believe in controlling their outcome and environment
Adverse to risk taking
Who makes the business plan should execute it
Everything done yesterday
ASSUMPTIONS
Visible Leadership: Empower leaders who can shape
the course of the company's direction
Hofstede Model
Parameter India Implication
Power distance High Informal and open organization wont
work
Individualism Low Building relations is very important
Uncertainty Avoidance Low Fixation on standardization and
timeliness needs to go
Long Term Orientation High Should focus on long term business
and not just achieving set targets
Was Silvio the right selection?
Selection Criteria Assessment
Cultural
Toughness
A typical western style manager driving for results
Not being aware of the organizational relationships
Depended on Mr. Singh for understanding the dynamics
UNFIT
Physical and
Emotional Health
Young and was in good health
Could handle the hardships emotionally
FIT
Age, Education MBA from Harvard
Performed well in the corporate planning function
FIT

Experience Successfully managed an important project Swatch
Did not have the real life experience for managing India
UNFIT
Motivation for
foreign
assignment
Highly enthusiastic about this project
Thorough groundwork that involved creating the business plan
Accepted the job despite the implications on his career and
family
FIT
Family Issues Relocated to India with his wife and two children
Shuttling between Delhi and Mumbai- less family time
Familys health issues
UNFIT
Leadership Style Hard factors like deadlines, clarity in communication,
directness, impatience for results etc.
UNFIT
Managing the Transition Process - The organization should have
supported him in settling in India
Training - Training, a significant aspect in any expatriate assignment
was completely missing here. It is imperative that he be trained on
the cultural issues
Frequency of Updation The assumptions underlying his strategy
changed. He should have kept himself tuned to the dynamic changes
of the emerging market
Performance Appraisal His career was dependent on this one job
and hence he could not inform the management of the problems he
was encountering
Managing Expatriate Assignments
Business Issues

Here the issue 1 is more important than issue 2 but both can be handled in parallel.
Shifting to local suppliers is inevitable
Should hasten the process of design and production specification transfer
Leverage the association in Europe to ensure there is no further time lag
Increase of import duty and Slow response from
European plants
Adapt to the local needs which will give a sales boost
Will motivate the sales force
Will also gain confidence of the Indian team which does not believe in his
strategy currently
Leverage their understanding of Indian market
Generate Sales
Cultural Issues

The cultural issues cannot be overcome in a day hence Silvio needs to work on them
in background while handling the business issues.
I
S
S
U
E

1

Napolis orderliness
and punctuality vs
Indian lackadaisical
culture of working
last minute
Was considered
impatient and
impulsive
Could not inspire
confidence in his
team
I
S
S
U
E

2

Inability to
understand the
Indian culture and
the system
His naivety as he
was caught red-
handed by the
increase in import
duties
Even after 8 months
could not adapt to
India and trust the
new faces
S
O
L
U
T
I
O
N

Cultural rigidness can
lead to failure of any
organization
Can incorporate
changes in his strategy
as suggested by his
Indian peers. This will
develop mutual trust
Process standardization
works in Swiss culture
not India hence the
disagreement
To work in India a
rational approach is
required taking into
consideration all the
stakeholders
Schindler's manufacturing cost structures were compatible with customization, not
commoditization
Exchange rates and unforeseen duties further frustrated market development efforts
The business plan's main objective was to develop a unique competitive advantage by
outsourcing the manufacturing to local companies
Cultural differences were immediate and costly
The mistrust developed between Silvio and Indian management staff can be attributed to
the stark difference in the working cultures of the two countries
Don't confuse tactical wins with strategic victories in foreign markets
Tactically the execution had been perfect, yet strategically the swatch strategy was not
winning any deals
Strategy Analysis
The way forward
Use his network and know-how of Schindler organization to speed up transfer of
technology. Explain to Mr. Bonnard and maybe to Mr. Schindler the challenges resulting
from the new transfer prices
Be more entrepreneurial about the business opportunity than theoretical. Focus more on
tapping into the growth of the market than building the business exactly as described in the
business plan
Increase awareness of cultural differences, get training and adapt
THANK YOU!